Arabica Coffee Closes Higher On Smaller Brazil Coffee Exports
Arabica coffee futures on ICE gained more than 2% on Monday, extending the market’s rebound from a 1-1/2 year low set earlier this month.
March arabica coffee on Monday closed up +3.75 (+2.42%), and Mar ICE robusta coffee closed down -3 (-0.15%).
Coffee prices Monday settled mixed, with arabica posting a 2-week high. Robusta fell back from a 2-3/4 month high as a stronger dollar sparked long liquidation in robusta futures.
March arabica coffee settled up 3.75 cents, or 2.4%, at $1.5855 per lb after setting a two-week high of $1.5995.
ICE certified coffee stocks rose to 858,847 bags on Monday. There were 125,209 bags pending grading.
Brazil coffee exports so far in January are below levels seen at this period last year, the government said.
March robusta coffee LRCc2 fell $3, or 0.2%, to $1,941 a tonne.
Robusta coffee has support from supply concerns. Last Thursday, Conab forecasted the 2023 Brazil robusta crop would fall -3.8% to 17.4 mln bags. Also, tighter current supplies are bullish for robusta after ICE-monitored robusta coffee inventories fell to a 4-1/2 year low today of 6,334 lots.
